Who: Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider for the insurance industry.
What: Reported first quarter 2025 financial results with significant growth in revenue, net income, and adjusted EBITDA.
When: For the quarter ended March 31, 2025.
Where: Jersey City, N.J., with global operations in over 20 countries.
Verisk announced a robust start to 2025 with first quarter revenues reaching \(753 million, marking a 7.0% increase from \)704 million in the previous year and a 7.9% rise on an organic constant currency (OCC) basis. This growth was driven primarily by strong performance in their underwriting and claims segments, where underwriting revenue increased 6.8% (7.2% OCC) and claims revenue rose 7.5% (9.6% OCC).
Net income demonstrated solid improvement, rising 5.9% year-over-year to \(232 million, reflecting strong operational execution amid an uncertain risk environment. Adjusted EBITDA, a key profitability measure, grew 9.5% to \)417 million, with a margin expansion to 55.3%, underscoring Verisk’s effective cost management and operating leverage.
Diluted GAAP earnings per share increased 8.6% to \(1.65, while diluted adjusted EPS rose 6.1% to \)1.73, both benefiting from operational performance and a lower share count.
From a cash flow perspective, net cash provided by operating activities surged 19.5% to \(445 million, and free cash flow advanced 23.3% to \)391 million. Verisk maintained a disciplined capital return program, paying a quarterly dividend of \(0.45 per share (a 15.4% increase) and completing a \)200 million Accelerated Share Repurchase program in April 2025, further reinforcing shareholder value.
The strong operating results build upon themes highlighted in Verisk’s prior earnings calls, where management emphasized investment in innovation and technology to support client efficiency, automation, and risk analytics in a challenging market.
Financial Position and Outlook:
Verisk’s balance sheet strengthened with total assets rising to \(5.12 billion as of March 31, 2025, up from \)4.26 billion at the end of 2024. The company holds \(3.75 billion in total debt, with \)518 million short-term and $3.23 billion long-term debt, reflecting strategic financing to support growth.
Looking forward, Verisk reaffirmed its 2025 financial guidance, targeting total revenue between \(3.03 billion and \)3.08 billion and adjusted EBITDA between \(1.67 billion and \)1.72 billion. The company projects diluted adjusted EPS in the range of \(6.80 to \)7.10, with a focus on sustaining strong margin performance and disciplined capital investment between \(245 million and \)265 million.
In summary, Verisk’s Q1 2025 results exhibit robust topline and bottom-line growth, fueled by continued demand for its underwriting and claims analytics solutions. The company’s strategic emphasis on innovation, client partnership, and financial discipline positions it well for sustainable long-term growth in the data analytics and insurance technology sector.
Source: Verisk 8-K Q1 2025 Report - https://sec.gov/Archives/edgar/data/1442145/000143774925014906/ex_770468.htm
Tags: Verisk Analytics, Insurance Technology, Data Analytics Growth, Q1 2025 Earnings, Financial Performance